Government Lottery Office ordered to pay 1.65 billion baht over failed project

After a decade-plus struggle, the Supreme Administrative Court has ordered the Government Lottery Office, or GLO, to pay the Thai conglomerate Loxley 1.65 billion baht in compensation over a failed online lottery project.

An online lottery system and machines were set up nationwide by Loxley GTech back in 2006. The company had also trained people on how to operate the system. After the system was handed over to the GLO, Thailand’s Council of State found that the sale of 2-digit and 3-digit lottery tickets were not legal under Thai law. The GLO later cancelled the contract with Loxley, which was signed in 2005.

Loxley first filed a lawsuit in April 2011. Back in June 2018, the Administrative Court had ordered the GLO to compensate Loxley 945 million baht, with additional fees such as a 7.5% annual interest due to the delay in getting the lottery project off the ground. The company appealed the verdict all the way to the Supreme Administrative Court.

The court found that Loxley had satisfied the terms of the contract by installing 3,000 lottery ticket dispensers, as scheduled, and had installed them as per GLO’s instructions. Additionally, the company had assisted in training lottery dealers in correct use of the machines and had given all 6,761 machines to the GLO.

The court has ruled GLO never voiced any concern that Loxley had in any way not fulfilled their contract. The court also asserted that GLO had not made the company aware that they could commence the online lottery ticket dispensing service 5 years after the dispensers had been installed, and that the GLO did try to cancel its contract with Loxley.

Loxley’s contract with GLO to install the nearly 7,000 lottery dispensers throughout Thailand back in 2005.

SOURCES: Thai PBS| Bangkok Post